Nationwide, small business employment continued to grow in March, though wages remained flat. Small business employment grew by 0.2 percent in March, or approximately 50,000 new jobs. The Index is based on data from more than 1,000 small businesses that use Intuit's online payroll.

Employment was even up in Florida, Oregon, California and Arizona -- states hit hardest by falling real estate prices, pointed out Susan Woodward, an economist who worked with Intuit to create the Index.

For February, employment growth data was revised slightly up to 0.3 percent, or 60,000 jobs added for the month. Since the growth trend first began in October 2009, small business jobs have increased by a revised estimate of 820,000.